Anyone that believes investors are more concerned about the future course of interest rates and the rate of inflation than a major outbreak of the virus, are wrong. Or at least that is what the S&P 500 index futures were telling investors in Tuesday’s session.
Following Monday’s strong rally, the index spent very little time in the red as it bottomed early in premarket trading just under the close (4587.25 vs. 4590). Off the open of the regular session, it blasted through the premarket high and embarked on a monster rally.
The index did attract some sellers just under its all-time closing high (4701.50) at 4692.75. It was hovering around that area into the first few minutes of the final hour. However, some profit-takers came in and a sizable sell imbalance instigated a dip into the mid 4660 handle minutes before the close.
As fast as it went down, it went back up even faster. The closing price of 4687.50, higher by 97.50 handles, is not even indicative of the pent-up demand. Immediately following the close, the index breached the daily high (4992.75) and traded as high as 4697.25 as of 4:45 PM EST, putting the futures at a large premium to the cash for Wednesday’s session.
From the biggest loser of the top components on Monday, Nvidia Corp (NASDAQ: NVDA) was the biggest gainer in Tuesday’s session. It added $23.90 or 8% to end the day at $324.37.
That was nearly four times the cash index’s gain of 2.07%.
The biggest loser of the top components was the smallest gainer. That being Johnson & Johnson (NYSE: JNJ) only gained $0.42 or 0.26% to close at $163.36.
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